The use of payment devices for a broad spectrum of cashless transactions has become ubiquitous in the current economy, according to some estimates accounting for hundreds of billions or even trillions of dollars in transaction volume annually.
Cashless digital payment transactions typically involve a purchaser presenting a payment device such as a payment card, e.g., credit or debit card, at the point of sale. A payment device can also include the use of cell phones, payment fobs, tags, chips, or other devices which may have wireless communication capabilities that connect with point of sale devices. Payments made by such devices are processed though a payment network that ensures that the payment amount is applied to the purchaser and that the merchant is paid. In order to conduct these payment transactions, a purchaser needs to interact with a point of sale device and present the payment device so that the transaction can be completed. Even when wireless payment technology is being employed, the purchaser still must interact with a point of sale location to make the payment by presenting the payment device. This can be problematic when there are a number of purchasers waiting to make payment. Delays required in making a payment can discourage purchasers from buying products. On the other hand, adding checkout lines to reduce delays can increase expenses for merchants.
Many payment transactions are based on a purchaser's presence in a physical location. For example, entering a parking area will typically incur a certain charge based on time. Presence in fitness location, museum, or amusement park can also be charged based on the user being present in a location. In order to pay for use of these facilities, a user is required to make a dedicated payment action such as stopping at a point of payment location. At this location a user may present cash or use a payment device, such as a credit or debit card. This process can be time consuming and inefficient both for the merchant and the consumer whether it is a one-time payment or a frequently reoccurring.
Accordingly, it would be desirable for a payment system that permits a payment transaction to be completed without the need for a dedicated payment action by the consumer.